India stocks top Indonesia as Asia’s least-favoured in BofA poll
India has replaced Indonesia as Asia’s least-preferred stock market among fund managers surveyed by Bank of America, with 32% of respondents net underweight on Indian equities. Lack of clear AI exposure, weak growth, high valuations and limited reforms emerged as key concerns, even as improving earnings and renewed foreign inflows provide some support.
Bank of America's recent survey of fund managers reveals India has supplanted Indonesia as the Asia-Pacific region's least-favored stock market, indicating growing caution over the country's performance. Among the 98 respondents, 32% were net underweight on Indian equities, highlighting concerns over a lack of clear artificial intelligence (AI) exposure and weak growth rates.
Additionally, poor valuations and insufficient reforms were cited as factors contributing to the bearish outlook on Asia's fourth-largest equity market. In contrast, sentiment improved for Indonesia, with 27% of fund managers considering it a net underweight, down from 32% in July. Despite improving earnings outlook, Indian stocks have experienced a decline over the past two weeks, prompting investors to remain wary despite strengthening fundamentals.
A total of $272 billion of assets were represented in the survey, conducted between August 7 and August 13.
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